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Law360 Speaks with Antitrust Co-Chair Saul Morgenstern on the FTC and Pay-for-Delay Settlements

Saul Morgenstern, Partner and Co-Chair of Kaye Scholer's Antitrust Practice, was quoted in Law360 on the Federal Trade Commision's (FTC) recent record-setting $1.2 billion pay-for-delay settlement with Cephalon, which gives the FTC a boost as it continues to challenge pay-for-delay settlements.

Among his comments on the FTC's settlement Morgenstern said, "Normal economic incentives being what they are, one would reasonably expect the FTC would take this as a sign that this is not a bad strategy and we will see it again. This may cause the FTC to jump into more of these cases. That only muddies the calculation for pharmaceutical companies, which already generally face claims for compensation from private plaintiffs who paid for the drugs at issue."

Morgenstern added, "It just complicates the litigation and settlement process when instead of dealing only with the people you have allegedly harmed, you're dealing with a government agency, as well, that has its own agenda and own incentives."